Tuesday, November 27, 2007

Property rates on fire??

Mumbai, Nov 26 Property prices in Mumbai touched a record high with the Wadhawan Group bidding Rs. 5.04 lakh per sq metre for a 7,107 sq metre commercial plot at the Bandra-Kurla Complex. The bidder will be allowed to construct 16,500 sqm office space on the land.

For another commercial plot measuring 10,183 sqm, Reliance Industries quoted Rs 918 crore, wherein it would be allowed to build a 20,366 sqm multi-storeyed car park and 30,550 sqm commercial complex.

The Kolkata-based TCG Infrastructure Ltd and Hiranandani combine emerged the top bidder for a third plot of 8,076.38 sqm. for Rs.1,031 crore. A maximum permissible built-up area would be 28,300 sqm.

The Mumbai Metropolitan Region Development Authority on Monday opened the bids for these three plots.

The sale of these three plots is expected to fetch MMRDA Rs. 2,780 crore.

“Bids have just opened and eligibility has to be determined as per tender norms,” said Mr. Ratnakar Gaikwad, Commissioner of MMRDA.

Mr. Anant J. Gupta, Chairman of the Builders Association of India, Mumbai Chapter, said the rates at BKC varied between Rs. 40,000 and Rs. 45,000 per sqft and the quotes of Reliance and TCG-Hiranandani combine were in the range. The Wadhawan Group, he felt, were a little aggressive.

Asked whether he expected such high rates, Mr Gaikwad said that the response was on the expected lines and it would be the base price for future auctions. The FSI (floor space index) awarded was two and the process of increasing it to four was on, he said.

Development works

“We require about Rs. 2.60 lakh crore by 2020 for development works and this could only constitute a small portion of it,” said Mr. Gaikwad.

In January, the MMRDA fixed a reserve price of Rs 480 crore for an 18.5-acre plot in BKC for an international convention-cum-exhibition centre and a commercial complex. And, Mukesh Ambani’s Reliance Industries bid Rs 1,104.11 crore for it - more than double the reserve price.

Earlier to this, the highest paid land deal was Rs 720 crore DLF put up for a similar-sized plot on NTC property in Mumbai.

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